08/29/2012

Humanitarian Effort in Congo Puts S.E.C. in Unintended Role

You think? Davidoff continues: "The S.E.C. estimates the initial compliance cost to be $3 billion to $4 billion, with continuing costs of $207 million to $609 million a year. Industry-sponsored estimates go higher, pinning the cost at $8 billion to $16 billion. ... These new rules could lead to manufacturers simply refusing to buy any of these minerals from Congo and surrounding area. This would be a de facto boycott that could harm the populace more than it would help. The rules could also have little benefit as smugglers simply circumvent them. Or the new rules could allow foreign companies to step in and buy these minerals at a lower cost, hurting American businesses while doing nothing to stop the fighting. As the S.E.C. has acknowledged, these rules “may provide significant advantage to foreign companies that are not reporting in the United States.” "

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You think? Davidoff continues: "The S.E.C. estimates the initial compliance cost to be $3 billion to $4 billion, with continuing costs of $207 million to $609 million a year. Industry-sponsored estimates go higher, pinning the cost at $8 billion to $16 billion. ... These new rules could lead to manufacturers simply refusing to buy any of these minerals from Congo and surrounding area. This would be a de facto boycott that could harm the populace more than it would help. The rules could also have little benefit as smugglers simply circumvent them. Or the new rules could allow foreign companies to step in and buy these minerals at a lower cost, hurting American businesses while doing nothing to stop the fighting. As the S.E.C. has acknowledged, these rules “may provide significant advantage to foreign companies that are not reporting in the United States.” "